National Grid Issues RFP to acquire 10 MW of Bulk Energy Storage Distribution Rights in Upstate New York

Oct. 9, 2019
National Grid has issued an energy storage solicitation for 10 MW of bulk, front-of-the-meter storage and power marketer services that maximize the value of the storage in key locations in upstate New York.

National Grid has issued an energy storage solicitation for 10 MW of bulk, front-of-the-meter storage and power marketer services that maximize the value of the storage in key locations in upstate New York.

The request for proposals (RFP) seeks distribution rights to energy storage that enhances grid reliability and resilience and contributes to achieving the state’s distributed, zero-carbon, renewable energy and climate change goals, according to the investor-owned utility.

Projects need to be able to reinforce distribution grid reliability during periods of peak demand. They also must participate in the New York Independent Systems Operator’s (NYISO) wholesale power market, or yield other revenue streams that offset costs. The goal is to reduce customers’ bills.

Four locations within National Grid territory

National Grid seek projects in four locations within the territory served by its subsidiary Niagara Mohawk Power: Old Forge, North Lakeville, Menands and the New York Independent System Operator – Zone F area.

Pre-qualification eligibility documents are due by October 31. Fully completed proposals are due by 5 p.m. December 20 and the projects need to be operational by Dec. 31, 2022.

The utility is carrying out the energy storage solicitation in accordance with the New York Public Service Commission order that requires investor-owned utilities to procure at least 10 MW of energy storage capacity so long as costs don’t exceed a ceiling defined by the utility (PSC Case 18-E-0130).

Winning projects may qualify for financial incentives and support that runs as long as seven years via the New York State Energy Research and Development Authority’s (NYSERDA) Bulk Storage Rights Contract program. Projects receive a fixed revenue stream, as well NYSERDA’s help maximizing distribution and wholesale system benefits for utility customers.

Projects will be selected based on quantitative critera — such as bulk incentive levels and the lower cost of project capital resulting from a fixed utility revenue stream — as well as qualitative factors, among them developer experience and project safety and viability.

Energy storage solicitations by other NY utilities

Other New York investor-owned utilities — Central Hudson Gas & Electric, New York State Electric & Gas (NYSEG), Rochester Gas & Electric (RGE), and Consolidated Edison (ConEd) and its subsidiary Orange & Rockland Gas & Electric (O&R) — have already issued bulk energy storage dispatch RFPs. NYSEG and RGE in February issued a joint implementation plan to carry out a competitive procurement for energy storage dispatch rights for a minimum of 10 MW each.

Central Hudson on July 30 announced a competitive RFP to acquire dispatch and scheduling rights to a minimum of 10 MW of energy storage capacity to be operational by year-end 2022. Offers needed to be exclusively for energy storage projects connected to the transmission or distribution system and capable of individual, direct participation in NYISO markets. In addition, energy storage systems are required to perform as stand-alone assets regardless of whether or not they’re to be co-located with generation assets.

ConEd and its O&R on July 15 issued a joint RFP for at least 310 MW of bulk storage — 300 MW for Con Edison and 10 MW for O&R.

New York Gov. Andrew Cuomo has pledged that New York will deploy 1,500 MW of energy storage capacity by 2025.

“Renewable energy is thriving in upstate New York,” said Chris Kelly, National Grid acting chief operating officer “Energy storage is a vital component to unlocking New York’s clean energy future, and we are committed to developing cost-effective solutions through a competitive bidding process. We are looking forward to receiving, reviewing and selecting the projects that provide the most value to our customers.”

The RFP is available on National Grid’s website.

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About the Author

Andrew Burger